One of the most common questions we get: 'Can I actually own property in Korea as a foreigner?' The answer is yes — but there are rules, registrations, and a process that looks nothing like buying a home in the US, UK, or Australia.
The legal framework
Foreign property ownership in Korea is governed by the Foreigner's Land Acquisition Act (외국인토지취득법) and the Foreign Investment Promotion Act (외국인투자촉진법). Under these laws, foreign nationals can buy and own land and buildings in Korea — including rural residential properties — with no citizenship or residency requirement.
Direct ownership vs. FDI ownership — what's the difference?
You have two main options. Direct ownership means buying property in your personal name. It's simpler administratively, but it doesn't qualify you for a D-8 visa and offers fewer tax advantages. FDI ownership means structuring the purchase through a Korean 법인 (business entity) that you own and control. It's slightly more complex to set up, but it's the route that unlocks visa eligibility and the full suite of business tax structures.
KoreaRoots only structures investments through the FDI route — because that's the pathway that gives you residency rights, not just a deed.
The purchase process, step by step
- Find and shortlist a property (we handle this)
- Conduct title search and due diligence at the local registry office
- Register a Korean 법인 (business entity) in your name
- Declare the investment through government-approved channels and receive a Foreign Investment Registration Certificate
- Sign a purchase agreement with the seller
- Transfer the purchase price through a Korean bank account
- Register the title transfer at the district court registry (법원 등기소)
- Apply for D-8 visa using your Foreign Investment Registration Certificate
Do I need to be in Korea?
For most of the process, no. Consultations, shortlisting, legal structuring, and investment registration can all be handled remotely. We strongly recommend one in-person visit — ideally to view your shortlisted properties and sign the purchase agreement. However, with a Korean power of attorney (인감증명서), even signing can be delegated.
What about taxes?
Foreign buyers pay acquisition tax (취득세) at standard rates — 1–3% of the property value for residential properties. Annual property tax is low on rural properties, often under ₩500,000 per year. Rental income from STR operations is subject to corporate tax through your 법인, which your Korean accountant handles. KoreaRoots includes annual tax filing as part of our Founding Member package.